The Important Points You Must Know in an Online Marketplace
Online marketplace is either an app or website that is facilitating shopping from various sources. For the operator of the marketplace, it doesn’t have any inventory and instead, their business is more about showing the inventory of other business to their users and then manages the transaction. There are countless of online marketplaces nowadays that you are for sure aware of and some may even be used to shop.
Since they are offering great convenience to consumers, for the past few years, it is not really a surprise that for the figure of these marketplaces exploded. If you are making a department store today, then it will be an online marketplace or otherwise called as department store 2.0. Primarily because users can have access to the inventory of the suppliers easily and at the same time, that the marketplace doesn’t require to own it prior to making offers, the products that are sold by the suppliers are easily accessible to consumers and also, there is real time information on how many supplies are still there on the online marketplace’s app or website.
Consumers do not want to use apps from just a single retailer. They’re more inclined to downloading an app that is offering products with wide selection than one store could provide. The truth is, this is one of the most sought after feature of this marketplace.
But not all are leading to positives because like any other form of marketplaces and services, there are some drawbacks about it too. Since the products are offered from various sellers, the information on it isn’t comparable and the delivery speed of the sellers isn’t uniform. Actually, there are many people who are shocked after learning about this. Making the marketplace work flawlessly means drawing in many suppliers at the same time and make things seamless for consumers which is quite hard to do.
As a matter of fact, there are three kinds of marketplaces today and these are vertical, horizontal and global. Following is a brief overview of each type of marketplace.
Vertical – a marketplace is considered vertical if it is selling products from multiple sources but all are of one type.
Horizontal – this is a kind of online marketplace that is selling products of different types but sharing a characteristic.
Global – as what the name implies, it is a marketplace that sells just about everything.
There are tons of hybrid marketplaces online and many companies both small and big allow users to offer their own products in these marketplaces that are mushrooming on different e-commerce sites. Assuming that they are functioning pretty well, then the marketplace adjuncts to the ecommerce websites that bring increased traffic and plethora of products.